Morning Update for 20 October 2021

Indices at previous closing

Nifty50: 18,418 ▼-58 (-0.32%)
Sensex: 61,716 ▼-49 (-0.08%)
Nifty Bank: 39,540 ▼−144 (0.36%)

For more updates on F&O, click here.

In the news

ACC posts strong Q2 profit growth   

In the September quarter, Mumbai-based leading cement manufacturer reported a 24% year-on-year increase in its net profit to ₹450 crore supported by lower tax. In the same period, the company's net sales rose by 5.3% to ₹3,653 crore on the back of a 4% increase in cement prices and 46% jump in ready mix concrete volumes. 

The management said that it witnessed a steep increase in fuel costs. However, the company believes that the government’s focus on infrastructure and housing will augur well for the cement demand in the upcoming quarters. Meanwhile, shares of ACC were down 2.5% yesterday.

NTPC may pick up stake in power exchange

According to the reports, the government-owned power conglomerate may purchase a 7%-10% stake in Power Exchange of India (PXIL). The company is promoted by NSE India and National Commodity and Derivatives Exchange. 

This comes after the government released a framework, which will enable state-owned power distribution companies to purchase power from the power exchanges. Experts believe that NTPC could buy a higher stake to support competition in the sector. Meanwhile, shares of NTPC were flat yesterday

Moody’s upgrades its outlook on banks

The global ratings agency has revised its outlook on Indian banks from negative to stable. The deterioration in asset quality has moderated and the operating environment has improved, according to Moody’s. These factors are expected to support asset quality and thereby improve the profitability of banks. 

Also, the revival in economic activity is likely to drive banks’ credit growth. However, the ratings agency warned that the quality of retail loans has deteriorated but to a limited extent. Meanwhile, the Nifty Bank Index was down 0.3% yesterday but has risen by 6% in October.

Sectoral indices (October 19)

Global markets (at 8:00 am)

Fact of the day

HSBC was founded in 1865 to finance the growing trade in India, China and Europe. 

Source: Reuters

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